Hong Kong securities watchdog has today slapped a fine of HK$9.6m ($1.2m) on HSBC for systemic deficiencies in its bond selling practices.
A strong message had to be sent to the market to deter similar misconduct, the Securities and Futures Commission (SFC) said in a statement.
The regulator had already warned in February that the mis-selling of financial products was “on its watch list”.
The SFC further said that HSBC Broking Securities (Asia) did not conduct proper and adequate product due diligence on individual bonds before making recommendations to its clients, and did not have an effective system in place to assess its clients’ risk profile and to ensure that its recommendations were suitable and reasonable.
Leave a Comment